Refinancing Reflects Reality, According to GuideToLenders.com

(PRWEB) June 4, 2008 -- Homeowners squeezed by stagnating wages and sharp increases in food and energy prices are looking for a way to get some breathing room. Consumers recently surveyed by GuideToLenders.com indicated that they were primarily concerned with lowering their mortgage interest rates or payments. The GuideToLenders.com survey asks consumers to choose their primary reason for refinancing.

April 2008 survey results:

?    29 percent: reducing interest rates

?    28 percent: reducing monthly payments

?    23 percent: converting adjustable rate loan to fixed rate mortgage

?    12 percent: receiving cash at closing

?    8 percent: other

In contrast, back in October 2007 nearly 30 percent of consumers surveyed told GuideToLenders.com that their main reason for refinancing was to convert an adjustable rate mortgage to a fixed rate loan. Only 14 percent wanted to refinance to reduce their interest rate.

October 2007 survey results:

?    29 percent: converting adjustable rate loan to fixed rate mortgage

?    28 percent: reducing monthly payments

?    19 percent: receiving cash at closing

?    14 percent: reducing interest rates

?    10 percent: other

Although interest rates have trended lower over the last 12 months, and the spread between fixed rate loans and adjustable rate mortgages has dropped to approximately 0.5 percent, homeowners appear to be more concerned with putting money in their pockets in the short term than stabilizing their mortgage for the long haul. Others who want to refinance to fixed rate loans may be unable to do so while home values are low. Those who may have the greatest need to fix their mortgage -- for example, homeowners with option ARM loans -- may lack the equity needed, and borrowers with jumbo mortgages may find fixed rates unattractive.

GuideToLenders.com recommends that homeowners considering refinancing their mortgage for any reason shop for their loan in advance, choose a lender and program, and get preapproved for their mortgage. Homeowners will then be positioned to close quickly when interest rates drop.

GuideToLenders.com is a consumer resource featuring guides on how to find the right lender or broker to provide options to best suit consumers' needs. The site has a variety of free tools and tips and provides an easy way to find multiple lenders to help consumers with their lending needs. Products offered by the lenders/brokers include new home financing, refinancing, home equity line of credit and debt consolidation loans. To find out more, visit http://www.GuideToLenders.com.

Contact:

Robert Lapic

GuideToLenders.com

650-578-7671

http://www.GuideToLenders.com

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